Careplus to raise up to RM10.6 mil via private placement to fund EV manufacturing hub - MIDA | Malaysian Investment Development Authority
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Careplus to raise up to RM10.6 mil via private placement to fund EV manufacturing hub

Careplus to raise up to RM10.6 mil via private placement to fund EV manufacturing hub

13 Jun 2024

Careplus Group Bhd (KL:CAREPLS) plans to raise up to RM10.57 million through a private placement to finance the construction of a manufacturing hub in Negeri Sembilan for its electric vehicle business.

In a bourse filing, the glove maker said the exercise entails the issuance of 63.31 million new shares, equivalent to 9.04% of its total number of issued shares.

Of this, about 25 million new shares, representing 3.57% of the company’s total number of issued shares, will be allocated to Ten Sang, a Seremban-based contractor responsible for the structural and infrastructure components of the manufacturing hub. The remaining new shares will be offered to third-party investors to be identified at a later date.

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“However, in an event Ten Sang does not take up the 25 million placement shares, the expected gross proceeds to be raised from the proposed private placement is approximately RM17.47 million and the total gross proceeds raised will be channelled towards the NEV (new energy vehicle) manufacturing hub,” the company said.

Careplus said the assumed price for the placement shares is 27.60 sen per share, representing a discount of about 9.95% over Careplus’ five-day volume weighted average market price of 30.65 sen up to June 7, the latest practicable date.

The proposed private placement is anticipated to conclude by the end of 2024, according to the loss-making company.

The NEV manufacturing hub, situated in Chembong, Rembau, is slated for completion by 2028.

Once operational, the hub aims to have an annual capacity of 30,000 vehicles, with one-third dedicated to assembling NETA models through the joint venture (JV) between Careplus and Intro Synergy Sdn Bhd, a subsidiary of Go Auto Group Sdn Bhd.

In January, Careplus announced that the JV company has been tasked with constructing the RM600 million green technology facility for the manufacture and assembly of NEVs in Chembong.

At end-March, Careplus had RM22.96 million cash and bank balances against RM52.41 million total borrowings.

Shares of Careplus rose two sen or 6.56% to close at 32.5 sen on Thursday, valuing the company at RM227.68 million.

Source: The Edge Malaysia

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